SciELO - Scientific Electronic Library Online

vol.22 issue43Environmental Perceptions of Surface Water Quality in Chiapas's Río Fogótico Micro Watershed author indexsubject indexsearch form
Home Pagealphabetic serial listing  

Services on Demand




Related links

  • Have no similar articlesSimilars in SciELO


Frontera norte

On-line version ISSN 2594-0260Print version ISSN 0187-7372


PONCE RODRIGUEZ, Raúl Alberto. Regional Externalities and the Provision of Public Goods in a Descentralized System of Subnational Governments. Frontera norte [online]. 2010, vol.22, n.43, pp.159-185. ISSN 2594-0260.

In this article, we develop a probabilistic voting model for the provision of local public goods in a decentralized system of local governments. In our economy, the heterogeneity of preferences for local public goods leads to a social choice problem that is solved through a state-level election. Our theoretical model provides empirically verifiable propositions about the determinants of public spending. In particular, our model suggests that in the absence of regional externalities affecting local public goods, distribution of income and the population in the locality explain the size of public spending. When regional externalities do exist, income distribution and the price of public goods in the overall economy, not just the state's economy, determine public spending by the state. Our model also identifies certain income configurations in the economy that can lead to asymmetries in the supply of local public goods as a result of the reduction in the average per-capita cost of public goods.

Keywords : Local public goods; interregional externalities; electoral competition; decentralized system of governments; regional development.

        · abstract in Spanish     · text in Spanish     · Spanish ( pdf )


Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License